Paragon Diamonds narrowed its fiscal year loss to $1.7 million (GBP 1.1 million) compared with $21 million one year ago. The explorer recorded no revenue for the year, but it has ''conditionally'' raised $2.3 million (GBP 1.55 million) for Lemphane's operations.

Paragon's executive chairman Martin Doyle said, "With the strategic objective of establishing an inferred resource at Lemphane by the end of first or second quarter of 2014, the rest of 2013 will be focused on completion of the 30,000 tonnes surface bulk sample, the generation of a detailed geological model by drilling and the initiation of trial mining.

"The trial mining will continue beyond the end of 2013, guided by the evolving geological model and expected to generate some 2,000 to 3,000 carats.

"This parcel of diamonds will provide a reliable insight into the prevailing diamond values at Lemphane and I look forward to being able to report on the recovery of further large high value diamonds that Lesotho is renowned for producing."